"A young international social media employee who was born after the Challenger tragedy unfortunately re-blogged a photograph of the explosion on our Tumblr account unaware of the context,” read the statement. “We deeply apologize for the insensitivity of that selection and the post has been deleted."

Although the company apologized, the American Apparel Facebook page had a number of angry comments from online commentators the day after the image was posted.

“Your company is an absolute embarrassment after utilizing the Challenger picture in the manner you did. I am deeply ashamed to call you fellow citizens after that....an absolute disgrace,” wrote Mike Brennan. “Consider removing American from your company name because you have made it clear you are far from it.”

The company has already been in upheaval in the past few weeks after the American Apparel board ousted its controversial CEO Dove Charney last month as the company faced dwindling sales.

Earlier this week Charney reportedly increased his ownership of stock in the company leading to rumors that he would try to oust board members by becoming the majority shareholder.